Innovation and Corporate Entrepreneurship Chapter 12

1
Innovation and Corporate EntrepreneurshipChapter
12
Mr Jeff Stambaugh jeff.stambaugh_at_ttu.edu http//ta
.ba.ttu.edu/jstambaugh
Just because something doesn't do what you
planned it to do doesn't mean it's useless
Edison
Built by Stambaugh/2008
2
Todays Objectives

• Know the issues of the innovators dilemma
• Understand the importance and types of innovation
• A few thoughts on personal entrepreneurship
• Understand the challenges associated with
  innovation
• Corporate entrepreneurship Understand the aims
  and approaches

Just because something doesn't do what you
planned it to do doesn't mean it's useless
Edison
Built by Stambaugh/2008
3
Opening Thoughts

• Entrepreneurship A process of creative
  destruction through which existing products,
  methods of production, or ways of administering
  or managing the firm are destroyed and replaced
  with new ones
• Mindset If it aint broke, break it before one
  of your competitors does!

Just because something doesn't do what you
planned it to do doesn't mean it's useless
Edison
Built by Stambaugh/2008
4
Creative Destruction
Just because something doesn't do what you
planned it to do doesn't mean it's useless
Edison
Built by Stambaugh/2008
5
Creative Destruction
Just because something doesn't do what you
planned it to do doesn't mean it's useless
Edison
Built by Stambaugh/2008
6
Not Proactive
Just because something doesn't do what you
planned it to do doesn't mean it's useless
Edison
Built by Stambaugh/2008
7
Innovators Dilemma

• Listening too much to current customers may cause
  you to miss next big thing (current needs vs.
  future needs)
• On the other hand, can you protect your
  innovation from fast-followers?

Just because something doesn't do what you
planned it to do doesn't mean it's useless
Edison
Built by Stambaugh/2008
8
Ways to Look at Innovation

• Process vs. Product
• Incremental vs. Radical

Just because something doesn't do what you
planned it to do doesn't mean it's useless
Edison
Built by Stambaugh/2008
9
Characteristics of EntrepreneursWhere Do I Stand?
TABLE 10.1
Entrepreneurs are known to have certain
characteristics. For each characteristic, rate
yourself on a scale of 14 with the following
scale values 1 This characteristic does not
describe me 2 This characteristic slightly
describes me 3 This characteristic accurately
describes me 4 This characteristic strongly
describes me Characteristic Rating Highly
motivated _____ Very optimistic _____ Very
willing to take responsibility for the outcomes
of projects _____ Consistently view uncertainty
as an opportunity _____ Highly tolerant of
ambiguous situations _____ Highly committed to
the importance of innovation _____ Very willing
to tackle tasks, even with insufficient
resources _____ The higher your score is, the
greater is the probability that you have many of
the characteristics of entrepreneurs.
Link to Entrepreneurs
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Recognizing a Good Opportunity

• Most ventures are formed by individuals who
  already work in the industry
• Good opportunities must be
• Achievable
• Attractive (value creating for you and customer)
• Durable

A person who never made a mistake never tried
anything new Einstein
Built by Stambaugh/2007
11
Failure The Current Buzz Word

• People vs. Process
• Celebrate
• Did we learn (and how do we learn?)
• Did this strengthen internal competences or
  external products / services

Just because something doesn't do what you
planned it to do doesn't mean it's useless
Edison
Built by Stambaugh/2008
12
Challenges of Innovation

• Seeds vs. Weeds (or wheat from chaff)
• Experience vs. Initiative
• Teams value innovation exposure
• Internal vs. External Staffing
• Building vs. Collaborating (or buying)
• MAs wise selection of alliance partners know
  thyself
• Incremental vs. Preemptive
• Event-pacing
• Focused vs. Dispersed

Just because something doesn't do what you
planned it to do doesn't mean it's useless
Edison
Built by Stambaugh/2008
13
Corporate Entrepreneurship

• Pursuit of new venture opportunities and
  strategic renewal
• Blue Ocean strategy
• Create uncontested space
• Make the competition irrelevant
• Create / capture new demand
• Break the value / cost trade-off
• Pursue differentiation and low-cost
  simultaneously

Just because something doesn't do what you
planned it to do doesn't mean it's useless
Edison
Built by Stambaugh/2008
14
Approaches to CE

• Focused
• New Venture Groups
• Business Incubators
• Dispersed
• Entrepreneurial cultures (flat, teams, failure,
  lots)
• Product Champions
• Exit Champions
• Firms as VCs
• Risks?

Just because something doesn't do what you
planned it to do doesn't mean it's useless
Edison
Built by Stambaugh/2008
15
Marissa Mayers Top 9Link

• Ideas can come from everywhere
• Share everything you can
• Youre brilliant, were hiring
• A license to pursue dreams
• Innovation, not instant perfection

• Data is apolitical
• Creativity loves constraint
• Users, not money
• Dont kill projects, morph them

Just because something doesn't do what you
planned it to do doesn't mean it's useless
Edison
Built by Stambaugh/2008
16
Summary

• Innovation is essential to firm survival
• Innovation is harder than it looks!
• Corporate entrepreneurship focused or dispersed

Just because something doesn't do what you
planned it to do doesn't mean it's useless
Edison
Built by Stambaugh/2008
17
Next Class

• COB / CE / Time for Rd 6

Just because something doesn't do what you
planned it to do doesn't mean it's useless
Edison
Built by Stambaugh/2008